Government inks mining rights deal with Barrick Gold

Government inks mining rights deal with Barrick Gold

On December 16, news sources said that the federal and Baluchistan governments signed a deal with the Canadian company Barrick Gold to restart mining at the Reko Diq Copper Mine in Baluchistan.

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The deal will go into effect on December 16, and the company should start working right away. An international court fined the company USD 6.5 billion, but that fine is no longer in force. Based on the agreement, Barrick Gold will get 50% of the profits from the mining site, the three state-owned companies will get 25%, and the remaining 25% will be split between Baluchistan (15%) and the federal government (10%). The share will be given to the partners and shareholders free of charge and with all costs covered.

It is important to note that Barrick, three federal state-owned enterprises, and the Baluchistan government all own Reko Diq, which is one of the largest undeveloped copper-gold projects in the world. The agreement between the government and Barrick Gold was recently ruled legal by the Supreme Court, which took a long time to do so.

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